Who Gets Hurt by Expensive Corn?
Corn prices fell a bit this week but have still risen 25% so far this month. High corn prices ripple through many sectors, but few as badly as food companies for which corn is a major input. Cereal companies and livestock companies are at the top of this list for those most affected by the newly expensive inputs. There aren't very many companies in this space Austin would recommend right now. Tough margins and sensitivity to commodity prices make them unattractive long-term investments.
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The article Who Gets Hurt by Expensive Corn? originally appeared on Fool.com.Andrew Tonner, Austin Smith, and The Motley Fool have no positions in the stocks mentioned above. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.